As China declared that it would crack down on mining as well as Bitcoin trading at the central government level, the government of Sichuan Province, following Inner Mongolia, also began cracking down on Bitcoin mining. Accordingly, the world’s attention is focused on the selection of the Xinjiang Uyghur Autonomous Government, which is the holy city of bitcoin mining in the world.
Recently, Bloomberg News reported that Chinese authorities are turning a blind eye to bitcoin mining in Xinjiang because it accounts for a significant portion of the region’s gross domestic product (GDP) and the need to develop the economy quickly to quell the independence movement. reported
â—‡ Liu He Ban Mining of Bitcoin : The State Council of China held a meeting of the Financial Stability and Development Committee presided over by Deputy Prime Minister Liu He on the 21st and said, “Cryptocurrency (virtual currency) can shake the entire financial market.” banned,” he said.
â—‡ Follow-up actions for Inner Mongolia Autonomous Region : Since then, Inner Mongolia Autonomous Region, one of the main bases for cryptocurrency mining in China, has started operating a cryptocurrency mining report network.
The Inner Mongolia Autonomous Government aims to completely eliminate cryptocurrency mining companies in the region as the measure is aimed at achieving the national energy saving goal.
The report includes not only cryptocurrency mining companies, but also companies that provide land or various services to mining companies.
Another western mining base, Sichuan Province, is also starting a crackdown on bitcoin at the provincial level.
â—‡ Following Inner Mongolia, Sichuan Province also joined : According to the Chinese online media ‘Zemen’ on the 3rd, the Sichuan Provincial Administration and Supervision Office of the National Energy Agency held a discussion meeting to review the situation related to cryptocurrency mining in the morning of the previous day.
Regarding the meeting, Chinese media pointed out that Sichuan appears to be considering tightening regulations related to cryptocurrency mining.
After the central government declared a ban on bitcoin mining, local governments are taking measures one after another.
But the most important is the movement of Xinjiang Uyghur Autonomous Region. This is because Xinjiang is a holy city for Bitcoin mining, accounting for 30% of global Bitcoin mining.
â—‡ Xinjiang is likely to be an exception : On the 31st of last month, Bloomberg News in the US announced that China will crack down on not only bitcoin trading but also mining at the central government level. It was reported that they would not be able to crack down on it.
Chinese authorities are turning a blind eye to bitcoin mining in Xinjiang because it accounts for a significant portion of the region’s GDP and the country needs to develop its economy quickly to quell the independence movement, Bloomberg said.
The GDP of Xinjiang is about 213 billion dollars. Among them, Bitcoin mining accounts for 1.4%. In particular, 25% of Xinjiang’s GDP growth last year came from high-tech industries such as bitcoin mining. Bitcoin mining is a non-negligible share of Xinjiang’s overall economy.
In addition, Xinjiang has the lowest power generation cost in China. In Xinjiang, coal is sold at half the price of eastern coastal areas. Coal costs less than $30 per ton. Therefore, it is the cheapest place to generate electricity in China.
Moreover, Bitcoin mining consumes only 10% of the total electricity generated in Xinjiang.
Most importantly, the Communist Party must achieve rapid economic development in order to silence the independence forces of Xinjiang.
In fact, a local mining company called ‘B-Top Mining’ posted the following tweet on Twitter regarding the recent central government crackdown on bitcoin mining.
“The CCP and President Xi Jinping’s top priority is to eradicate poverty in Xinjiang rather than crack down on bitcoin mining.”
Experts say that China will be able to crack down on bitcoin mining in earnest only when measures are taken to crack down on bitcoin mining in Xinjiang.
